Siemens Energy’s Twin Engines: Grid Boom and Wind Recovery Lift Shares to Record High

Siemens Energy hits record highs as grid tech orders jump 41% and Gamesa losses narrow 80%, prompting full-year guidance upgrade and share buyback.

The narrative around Siemens Energy has undergone a dramatic rewrite. For months, the market’s gaze was fixed on the troubled wind turbine business, Siemens Gamesa, as a drag on the group’s valuation. Now, two forces are converging to propel the stock to unprecedented heights: a surge in grid infrastructure demand, fueled by the insatiable power needs of artificial intelligence, and a sharp turnaround at Gamesa that is exceeding expectations.

The preliminary results for the second quarter, released on April 23, paint a picture of a company firing on multiple cylinders. Order intake surged nearly 30% year-on-year to €17.75 billion, comfortably beating analyst forecasts of €16.6 billion. While revenue and net profit came in slightly below consensus, the sheer scale of the order book has forced management to lift its full-year guidance across the board.

Grid Technologies Takes the Lead

The standout performer remains Grid Technologies, the division that builds the infrastructure to connect renewable energy and, increasingly, power-hungry AI data centers. The unit saw orders jump 41% in the quarter, a trend that began in the first three months of the year and shows no signs of slowing. The company now expects full-year revenue growth in the "high single-digit to low double-digit" percentage range, up from previous guidance. The operating margin for the group is forecast to reach as high as 12%, with Grid Technologies alone targeting a margin of around 19%.

This boom is reshaping the company’s profile. Siemens Energy’s market capitalization has swelled to roughly €158 billion, making it the third most valuable listed company in Germany, having overtaken insurance giant Allianz. The stock closed at €188.00 on Friday, a fresh all-time high and a gain of more than 182% over the past twelve months.

Gamesa’s Dramatic Improvement

While the grid business grabs the headlines, the quiet recovery at Siemens Gamesa is proving equally significant. The wind power division’s operating loss narrowed to just €44 million in the second quarter, down from €249 million in the same period last year — a decline of more than 80%. That result also beat analyst expectations, which had forecast a loss of €74 million.

Management remains committed to reaching breakeven at Gamesa by the end of fiscal 2026. The first half of the current year is expected to remain in the red, but the second half should swing into positive territory. The improvement is already easing the pressure on the parent company, which has long been weighed down by the unit’s struggles.

Activist Pressure and Buyback Plans

The turnaround has not silenced all critics. Activist investor Ananym Capital continues to push for a full spin-off of Gamesa, arguing that separating the wind business would unlock the hidden value in the profitable core operations. The company, however, is pursuing a different path, backing its confidence with a massive share buyback program. The first tranche of a plan that could see up to €6 billion returned to shareholders by the end of 2028 is already underway, with the program running through September 2026.

Analysts are taking note. Deutsche Bank raised its price target to €195, maintaining a buy rating, while RBC sees further upside to €200. Goldman Sachs’ Ajay Patel, citing strong cash flow, kept a target of €185. The stock currently trades above that level, reflecting the market’s optimism that the second half of the year will deliver on the upgraded targets.

The full quarterly report is due in May, when management will provide deeper insight into margin trends at Grid Technologies and confirm whether Gamesa’s recovery has genuine momentum. For now, the twin engines of grid infrastructure and wind power are firing in sync — and investors are betting the best is yet to come.